Share this article
Binance's BNB Hits Fresh Record, Breaks Out of 3-Year Range as Altcoin Rotation Accelerates
Older cryptocurrencies with regulatory overhang were among the biggest gainers over the past month as Donald Trump's election victory promises a friendlier U.S. regulatory environment toward digital assets.
Dec 4, 2024, 8:28 p.m.
What to know:
- BNB hit a lifetime high of $793 on Wednesday, gaining 14% over the past 24 hours and outperforming the broad-market CoinDesk 20 Index.
- The token is benefitting from rotation to altcoins, easing regulatory headwinds in the U.S. and shrinking supply through token burning.
The Binance-adjacent cryptocurrency BNB, the native token of the BNB Chain, surged to new all-time high price on Wednesday, the latest large-cap crypto to notch fresh records following , and Tron's TRX as capital rotation to altcoins marches on full steam.
BNB hit a $793 session high earlier Wednesday before paring some of the gains, breaking above the $700-$720 level that posed a resistance more than three years, TradingView data shows. The token recently changed hands at $730, still up 14% over the past 24 hours and outperforming BTC's 0.4% gain and the broad-market benchmark CoinDesk 20 Index's 2.7% advance.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The action happened as bitcoin has stalled below the psychologically key $100,000 mark and traders rotated capital to smaller cryptocurrencies, or altcoins, to chase gains. Older cryptocurrencies with regulatory overhang including Ripple's XRP and TRX were among the biggest gainers over the past month as Donald Trump's election victory promises a friendlier regulatory environment towards digital assets.
Advertisement
BNB was originally launched by crypto exchange giant Binance in 2017 and powers the blockchain ecosystem BNB Chain, formerly known as Binance Smart Chain. It's also used as a utility token on Binance to pay transaction costs and receive discounts on trading fees.
The exchange's regulatory troubles weighed on BNB heavily through 2023: Even though crypto markets rebounded towards the year-end, BNB was still at near bear market lows around $200. These pressures have eased by now. Binance's founder and former CEO Changpeng "CZ" Zhao was released from prison in September after he pleaded guilty for violating the Bank Secrecy Act (BSA) and served a four-month sentence in the U.S. The exchange also significantly boosted its compliance department, CoinDesk reported last month.
The token is also benefitting from the exchange's quarterly token burning scheme, which regularly reduces the token's supply based on the BNB Chain's blockchain activity. Last month, Binance destroyed more than 1.7 million BNB tokens worth $1.07 billion at the time, the exchange reported.
User activity also rose in the BNB Chain ecosystem along with prices. Daily active addresses and number of transactions in a day recorded their strongest levels in at least three months, data by Artemis.xyz shows.
More For You
More For You
Bitcoin Jumps to $99K as Spiking Coinbase Premium Points to Strong U.S. Buying
Spot BTC prices were at times $300 pricier on Coinbase relative to Binance, suggesting the rally may be driven by heavy demand from American investors.
What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
Top Stories
